Get Up to $12,000+ to Replace Your Gas Furnace with a Heat Pump
California and federal programs are offering major incentives to help you switch from natural gas to efficient electric heat pumps before the 2030 gas furnace ban.
California isn’t paying you to replace your gas furnace with another gas furnace. Instead, the state and federal government are investing heavily in incentives that reward you for installing high-efficiency electric heat pumps that provide both heating and cooling.
Valley Comfort Heating and Air helps homeowners in Sonoma, Napa, and Marin Counties navigate these programs and choose the right system for their home.
Key Benefits
Up to $4,000 from TECH Clean California for qualifying heat pump systems
Up to $8,000 in income-based rebates through HEEHRA
30% federal tax credit, up to $2,000 for eligible installations
We guide you through the entire incentive and paperwork process
California Is Phasing Out New Gas Furnaces by 2030
California is not offering direct rebates for simple gas-to-gas furnace replacements. Instead, the state is using programs like TECH Clean California and federally funded initiatives to encourage homeowners to move away from natural gas and toward efficient electric heat pumps.
As part of California’s decarbonization strategy, the California Air Resources Board has mandated that all new space and water heating appliances sold in the state be zero-emission starting in 2030. That means when your existing gas furnace fails after that date, you’ll need to replace it with an electric system such as a heat pump.Switching sooner lets you take advantage of today’s incentives, spread out your planning, and upgrade to a system that delivers both heating and cooling in one.
2030: New gas furnaces can no longer be sold in California
Incentives are focused on electric heat pumps
One system for both heating and cooling
See Current Incentives for Your Address
We stay up to date on statewide and local programs so you don’t have to. For homeowners who like to dig into the details, there are also public tools that show current incentive offerings by location.
You can explore programs using resources like The Switch Is On incentive finder, which lists incentives available for your address and utility.
Or, if you’d rather skip the research, we’ll do the work for you and explain your options in plain language.
Stack Your Savings: State, Federal, and Utility Incentives
Multiple programs can work together to reduce the cost of upgrading from a natural gas furnace to an electric heat pump. Here’s a simplified overview of what may be available.
TECH Clean California
TECH Clean California is a statewide initiative designed to accelerate the adoption of clean heating and cooling systems.
- Standard incentives: Currently, homeowners may be eligible for up to $4,000 for a new heat pump HVAC system, especially when replacing a gas appliance.
- How it works: These incentives are often provided as upfront discounts by TECH-enrolled contractors at the point of sale.
HEEHRA (Income-Qualified Incentives)
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides additional rebates for income-eligible households and is administered through TECH.
- Up to $8,000 for households with income at or below 80% of Area Median Income (AMI)
- Up to $4,000 for households with income between 80% and 150% of AMI
Federal Tax Credits (Inflation Reduction Act)
The federal government offers additional support that can often be combined with state incentives.
- Energy Efficient Home Improvement Tax Credit
- 30% of the cost of eligible home improvements, up to $2,000 annually for an electric heat pump installation
Future HOMES Rebates
The HOMES program is designed to reward projects that significantly reduce a household’s energy use, with rebates up to $8,000. In California, this program is still under development and not yet widely available, but it may offer additional opportunities in the future.
Local Utility Incentives
Local utilities such as PG&E and SMUD often provide their own rebate programs for energy-efficient upgrades.
- Additional rebates may be available for qualifying heat pump installations
- These incentives can sometimes be combined with state and federal programs for even greater savings
Disclaimer: Incentive amounts, eligibility, and availability can change. During your assessment, we’ll review your specific situation and estimate the incentives you may qualify for based on your location, income, and chosen equipment.
Check Your Heat Pump Incentive Eligibility in 60 Seconds
The incentive landscape can be confusing. Our job is to make it easy. Valley Comfort Heating and Air guides you through each step, from evaluating your current system to installing your new heat pump and helping you access available incentives.
Free Assessment
We review your existing natural gas furnace, your home’s layout, and your comfort needs to determine if a heat pump is a good fit.
Incentive & Rebate Review
We look at programs like TECH Clean California, HEEHRA, federal tax credits, and local utility rebates to estimate your potential savings.
System Design & Installation
We recommend a high-efficiency electric heat pump system tailored to your home and handle the complete installation.
Paperwork & Support
We help you navigate the applications and, where possible, apply incentives as upfront discounts through participating programs and contractors.
Check Your Heat Pump Incentive Eligibility in 60 Seconds
Answer a few quick questions and we’ll estimate which incentives you may qualify for and what a heat pump upgrade could look like for your home.
No obligation. We’ll never sell your information.
Is a Heat Pump Incentive Right for You?
Not every home and situation is the same. Here’s when these programs tend to make the most sense.
Great Fit If:
- You currently heat your home with a natural gas furnace
- You live in Sonoma, Napa, or Marin Counties
- You want both efficient heating and central cooling
- You plan to stay in your home for several years
Things to Consider:
- Some incentives, like HEEHRA, are income-based
- Availability and amounts can vary by utility and exact location
- Federal tax credits reduce your tax bill rather than your upfront invoice
If you’re unsure where you fall, we can walk you through it during a quick assessment.
Heat Pump Incentives & Gas Furnace Phase-Out FAQs
Is California offering rebates to replace my gas furnace?
How much can I actually get in incentives?
It depends on your location, income, and the system you choose. In many cases, homeowners may see:
- Up to $4,000 from TECH Clean California for a qualifying heat pump
- Up to $8,000 in income-based rebates through HEEHRA
- A 30% federal tax credit, up to $2,000, for eligible heat pump installations
- Additional rebates from local utilities such as PG&E or SMUD
We’ll provide an estimate tailored to your situation during your assessment.
Can I combine state, federal, and utility incentives?
Do I have to pay everything up front and wait for rebates?
What happens after 2030 if my gas furnace breaks?
What if I’m not sure whether I qualify based on income?
Plan Your Switch from Gas to Heat Pump Before 2030
Incentive programs and funding levels can change, and California’s 2030 gas furnace sales ban is getting closer. Now is an ideal time to explore your options, lock in available incentives, and upgrade to a high-efficiency electric heat pump.